Sale Affirms Resurgence of Confidence in Manhattan’s Office Sector and Value of Highest Quality, Future-Looking Sustainable and Healthy Properties
Marks First $1 Billion+ Sale in NYC Since Start of Pandemic
Q3 2021 hedge fund letters, conferences and more
NEW YORK–(BUSINESS WIRE)–Cove Property Group and The Baupost Group announced the $1.033 billion sale of Hudson Commons, the 697,958 sq. ft. 25-story trophy tower at 441 Ninth Avenue to CommonWealth Partners in a transaction arranged by CBRE.
Located at the transportation-rich nexus of Hudson Yards and Manhattan West, Hudson Commons occupies the full block-front of Ninth Avenue from 34th-35th Streets. The property is New York City’s most highly regarded redevelopment, pairing the adaptive reuse of an existing brick factory building with a modern glass overbuild to set a new bar for “the office of the future.” One of only four NYC office properties to achieve LEED Platinum status, Hudson Commons is a beacon for sustainability and wellness, designed pre-pandemic to be one of the nation’s healthiest office environments. Hudson Commons offers an amenity-rich environment that evokes a luxury boutique hotel while also delivering efficient, flexible space with high (14’+) ceilings, natural light, breathtaking views and cutting-edge technology.
“This transaction is a bellweather for the resurgence of confidence in the office sector and validation for the value created by forward-looking, sustainable redevelopment at a trailblazing location,” said Kevin Hoo, Managing Partner of Cove Property Group. “Given the aging nature of the majority of Manhattan’s office product, Hudson Commons is a model for the office of the future in this City – sustainably adapting an obsolete property into one that meets every modern standard, from environmental to operational to experiential.”
A CBRE team led by Darcy Stacom and Bill Shanahan spearheaded the marketing campaign for Hudson Commons and represented Cove in the negotiations.
“The world-class combination of an old factory warehouse with a stunning, healthy and efficient modern tower has been a beacon for tenants and a standout in the creation of a new trophy property,” said Ms. Stacom, Chairman and Head of New York City Capital Markets for CBRE. “This transaction is a resounding affirmation of Cove’s achievement with this renovation, the excellence of the location, and the enduring value of the finest modern office properties in Manhattan.”
Cove and Baupost acquired 441 Ninth Avenue in 2016 and executed an ambitious campaign to completely renovate the eight-story warehouse building and add an 18-story modern glass-and-steel overbuild. Hudson Commons achieves dramatic sustainability benchmarks, synthesizing brand new infrastructure with enhanced air quality and 14 separate outdoor terraces to meet LEED Platinum standard.
Designed from the inside-out to be “the office of the future,” Hudson Commons’ side core configuration maximizes efficiency, light and views and integrates touchless technology and innovative systems to create a healthy environment. Flexible floorplates of 16,000 – 50,000 SF of nearly column-free space with ceiling heights of 14-feet to 28-feet offer intentionally democratized space for every tenant to enjoy a premier experience.
“Hudson Commons is a trailblazing property, in location, in design, in intention and in ESG. We are proud to become its steward as it achieves its full potential,” said Brett Munger, CEO and Managing Partner of CommonWealth Partners. “This property has been developed to enable its tenants to attract and retain the very best talent in this new work environment, a base for teams to safely come together and achieve their goals. Hudson Commons is making a real contribution to the renewal of New York City.”
Hudson Commons is 75% occupied, with approximately 670,000 square feet of office space and 16,000 square feet of ground-floor retail available. Fitness giant Peloton and rideshare innovator Lyft anchor Hudson Common’s office tenancy. The property is richly amenitized, offering tenant lounges, a bike room, outdoor space totaling nearly 30,000 sq. ft., meeting rooms and conferencing facilities designed to evoke a luxury hospitality setting.
The full CBRE team for this transaction includes Ms. Stacom, Mr. Shanahan, Doug Middleton, and Alana Bassen.
About Cove Property Group LLC
Cove is a New York City-based owner, operator and developer of innovative institutional grade commercial real estate. Founded by Kevin Hoo, Thomas Farrell and Amit Patel, Cove’s team has a combined 50 years of ownership, asset management and respected development expertise. Cove focuses on investment and redevelopment, as well as ground-up development, of key asset types including commercial office, retail, residential and industrial. For more information, please visit www.covepg.com
About The Baupost Group, LLC
The Baupost Group is a Boston-based investment manager with a long-term, value-oriented approach. Since 1982, the firm has been thoughtfully stewarding and compounding capital on behalf of families, foundations and endowments, as well as employees who collectively are the firm’s largest client. Today Baupost manages roughly $31 billion, of which approximately 20 percent is held in cash or cash equivalents, allowing the firm to invest at scale and execute quickly on new opportunities. CEO and Portfolio Manager Seth Klarman has overseen Baupost’s investments from the company’s inception.
With a broad and flexible charter, and depth of experience across all asset classes and market environments, Baupost is strongly positioned to evaluate and pursue longer-duration and highly complex real estate transactions of any size. Working both independently and through joint ventures, the firm’s real estate experience includes development and re-development of commercial, residential and mixed-use properties; ground leases, leaseholds and complex ownership structures; lending; and asset management both in the U.S. and internationally.
About CommonWealth Partners
CommonWealth Partners, LLC is a national, vertically integrated, privately owned real estate investment, development, and management organization. CWP offers a wide array of services including entitlement, construction management, investment and capital market transactions, portfolio management, asset management, property management, marketing, leasing, and accounting/reporting, all with a sharp focus on our customers. During its 25 years history, CWP has owned and operated large scale, premiere quality office and mixed-use assets throughout the United States with a current portfolio located in the Seattle, San Francisco, Los Angeles, San Diego, Boston, New York and Washington D.C. Metropolitan areas.
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